Congress recently enacted an non refundable credit based on the cost of the qual

Question

Congress recently enacted an non refundable credit based on the cost of the qualifying alcohol and drug abuse counseling programs provided by and corporate employer to its employees . The credit is limited to 50 % of the total cost of the program .if a corporation elects the credit, none of the program costs are allowed as a deduction. Any credit in excess of current year tax may not be carried back to forward to another year.

A.      TMM Corporation spent $ 80,000 for a qualifying counseling program this year .if TMM has $ 500,000 taxable income before considering this expense .should it elect the credit or deduct the program's cost as an ordinary business expense?

B.      Would your answer change if TMM had only $ 70,000 taxable income before consideration of the expense?

Explanation / Answer

Assembly called to order at 10:35 a.m.

Mr. Speaker presiding.

Roll called.

All present.

Prayer by the Chaplain, Dr. Ken Haskins.

Our Heavenly Father, You are light. Your word is a lamp unto our feet and a light unto our

path. Enlighten us with knowledge, understanding, reason, and wisdom. Enable us to make

good and wise decisions and to promote the best interests of all Nevadans. I pray in the Name of

the One who is the light of the world.

AMEN.

Pledge of allegiance to the Flag.

Assemblyman Conklin moved that further reading of the Journal be

dispensed with, and the Speaker and Chief Clerk be authorized to make the

necessary corrections and additions.

Motion carried.

REPORTS OF COMMITTEES

Mr. Speaker:

Your Committee on Ways and Means has had under consideration the various budgets for the

Division of Insurance of the Department of Business and Industry, and begs leave to report back

that the following accounts have been closed by the Committee:

Insurance Regulation (101-3813)

Insurance Examiners (223-3817)

Captive Insurers (101-3818)

Insurance Recovery (101-3821)

Insurance Education and Research (101-3824)

National Association of Insurance Commissioners (101-3828)

Insurance Cost Stabilization (101-3833)

Self Insured

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